An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,150,000 and annual maintenance of $115,000. Benefits for barges and paddle wheel touring boats are estimated at $775,000 per year. The project is assumed to be permanent, and the discount rate is 12% per year. Determine if the Corps should proceed with the project.What will be an ideal response?

Answers

Answer 1
Answer:

Answer:

The project should be rejected because the costs are larger than the benefits.

Explanation:

EAW = equivalent annual worth = equivalent annual benefit - equivalent annual cost

equivalent annual cost = ($6,150,000 x 12%) + $115,000 = $853,000

equivalent annual benefit = $775,000

EAW = $775,000 - $853,000 = -$78,000

since the EAW is negative, then the project should not be carried out.

Another way to calculate this is by dividing benefits by costs. If the answer is 1 or higher, then the project should be accepted:

B/C = $775,000 / $853,000 = 0.9086 ≤ 1, project rejected


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If the depreciable investment is $1,000,000 and the MACRS 5-Year class schedule is: Year-1: 20%; Year-2: 32%; Year-3: 19.2%; Year-4: 11.5%; Year-5: 11.5% and Year-6: 5.8% Calculate the depreciation tax shield for Year-2 using a tax rate of 30%:

Answers

Answer: C.$96,000

Explanation:

The Depreciation Tax Shield refers to how much in taxes are being saved by the company for depreciating an asset because Depreciation is tax deductible.

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Answers

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If unmeployment were zero that would mean no new business could start, no existing business could expand and no one is entering the labor force. shortage of labor like this would increase the wage as the existing business  have to compete for the labors and if wage sgoes up then prices goes up as well: inflation.

Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.On the basis of the given information

a. Gamma should export both tea and pots to Sigma
b. Sigma should export tea to Gamma and Gamma should export pots to Sigma
c. Gamma should export tea to Sigma and Sigma should export pots to Gamma
d. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots

Answers

Answer:

The correct answer is "C"

Explanation:

Production prospects Frontier utilizes the idea of chance expense of creation. It is the measure of other great relinquished or not created so as to deliver a specific decent.  

For Gamma, the opportunity cost of delivering one unit of tea is 120/120 = 1 unit of pot. For Sigma, this open door cost is 120/40 = 3 units of pot. It shows that the open door cost of delivering tea is lower in Gamma. Consequently Gamma ought to represent considerable authority in the creation of tea and should trade it. Sigma ought to represent considerable authority underway of pots and fare it.

An inferior good is Multiple Choice A. one whose demand curve will shift rightward as incomes rise.

B. not accurately defined by any of these statements.

C. one that has not been approved by the Federal Food and Drug Administration.

D. one whose price and quantity demanded vary directly.

Answers

Answer:

B. not accurately defined by any of these statements.

Explanation:

An inferior good is defined as one whose the quantity demanded decreases as the income of its consumers increases and vice versa.

Option A is incorrect because the income elasticity for inferior goods is negative and therefore, as the income of the consumers increases, the demand curve shifts to the left.

Option C is incorrect because an inferior good does not necessarily mean a fake good. A good can be inferior but yet meet all the standards for approval by the FDA.

Option D is incorrect. The price and quantity demand for inferior goods, just like normal goods do not vary directly. This is only applicable to luxurious goods.

None of the statements in A, C, and D accurately defined an inferior goods.

Hence, the correct option is B.

Answer:

B. not accurately defined by any of these statements.

Explanation:

Inferior goods are goods whose demand decreases as the consumers income increases. This is different for normal goods in that the more the consumer earns, the more he/she tends to buy.

As such, inferior goods are not necessarily goods that has not been approved by the Federal Food and Drug Administration.

For Inferior goods, prices and quantity demanded do not vary proportionately.

Furthermore, the demand curve for an inferior good shifts out (rightward) when income decreases and shifts in when income increases.

A manufacturing execution system (MES) provides information on job priorities using dispatching rules. supports managers in the adjustment of lead times to meet customer needs. is another name for a shop floor control system. has all of these features

Answers

Answer:

has all of these features.

Explanation:

This can be said to be a computerized system that are been used as information connection which in many cases are used in monitoring, and controlling of complex system primary used in manufacturing system and also the flow of data in floors that manufacturing are been mostly done. That it is said that a manufacturing execution system posses all the above listed characteristics ranging from providing info for job priority using relevant rules to adjusting lead time to provide customers needs. They are also seen to compile certain bill of materials, resource management and scheduling, preparing work in rogress reports and tracking production lots.

According to the "J curve effect," a weakening of the U.S. dollar relative to its trading partners' currencies would result in an initial ____ in the current account balance, followed by a subsequent ____ in the current account balance. a. decrease; decrease b. decrease; increase c. increase; increase d. increase; decrease

Answers

Answer:

Option B                      

Explanation:

In economics, the J-curve impact is frequently used to explain, for example, how a nation's trade balance negatively affects briefly after a depreciation of its exchange rate, then gradually recovers, and eventually exceeds its previous results.

If the currency of a country is appreciated, economists note, there may be a reverse J-curve. For importing nations, the country 's products unexpectedly become more competitive. When other countries will meet the gap at a cheaper profit, the stronger currency would weaken its advantage on exports.

Final answer:

According to the 'J curve effect', a weakening of the U.S. dollar would cause an initial decrease in the current account balance due to the instant effects on import and export prices. However, with time, the balance is likely to increase due to adjustments in export and import volumes. Therefore, the correct response to your question is (b) decrease; increase.

Explanation:

The 'J curve effect' is a theory in international economics that describes the likely effects of a currency devaluation on a country's trade balance. In specific, when the U.S. dollar weakens relative to its trading partners' currencies, it could initially cause a decrease in the current account balance. The reason is that the immediate effect of a weaker dollar is to make foreign imports more expensive and the U.S. exports less valuable, deteriorating the trade balance. However, in the longer term, the trade balance may increase in the current account balance. This is because over time, the cheaper U.S. exports become more appealing to overseas buyers and imports into the U.S. decrease due to their higher price, improving the balance.

So the answer to your question is: a weakening of the U.S. dollar relative to its trading partners' currencies would result in an initial decrease in the current account balance, followed by a subsequent increase in the current account balance. Hence, the correct option is (b) decrease; increase.

Learn more about J curve effect here:

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